Working Hours

In Bahrain, a typical workday lasts 40 to 48 hours, with an average of 8 hours per day, with Muslim employees working 6 hours a day throughout Ramadan. Furthermore, the weekend is Friday and Saturday, while the working weeks is Sunday through Thursday. Additionally, an additional 25% should be paid for overtime.

Holidays

In the region there are 9 holidays.

Annual Leave

Workers are usually eligible for a month of yearly leave with pay after a year of employment. The worker is able to use the vacation time during the first year of employment, which accumulates at a rate of 2 1/2 days per month for all workers. As a result, the vacation is legitimate for six days in a row.

Employees can have three days of absence for marriage-related reasons if they present a duplicate of the marriage license.

Muslim employees who have been employed by the company for at least 5 years are eligible for one single 14-day leave period for a pilgrimage to Mecca.

Sick Leave

There are normally 55 sick days available to employees each year:

• 15 full-paying days.
• 20 days with half wage.
• 20 days of leave with no pay.

Parental Leave

In general, women have 75 days of leave for childbirth, which includes:

• 60 days of leave with pay.
• 15 days of leave without pay.

Women in Bahrain cannot work for 40 days after giving birth.

Insurance

Bahrain has a public and private healthcare system. Bahraini nationals are eligible for complimentary or greatly lower medical care. Having health insurance is crucial because although foreign nationals can access the same facilities and doctors, they still need to pay for their treatment. Companies do not offer extra health insurance benefits; rather, companies and workers can negotiate them.

Extra Benefits

Housing, transportation, and utility refunds are common in Bahrain. We typically urge companies in Bahrain to negotiate the complete salary with workers in Bahrain, along with any applicable allowances, since the total pay is ultimately what counts to both sides.

Termination

Employees on indefinite contracts in Bahrain who are fired after 3 months are frequently subject to 2 days’ pay for every month they work. This, with a minimum wage of one month and a total of 12 months’ pay, regardless of whether the dismissal was for a valid reason.

Employees with fixed-term contracts typically have the right to receive the pay they would have received for the remaining time under the contract. Both parties may agree to a new arrangement, which must be for at least 3 months’ pay or the balance of the term, whatever is less.

At the conclusion of their employment term, Bahraini employees who are not under the Law on Social Insurance are typically eligible for an indemnification or gratuity. For the first three years of employment and one month for each year after that, this compensation should be set at half a month.

Taxes

There are no individual income taxes in Bahrain.

Employees contribute 1% of their income as a social levy to fund unemployment insurance.

Local businesses have to contribute 12% of payroll to social welfare, while employees are bound to contribute 7%. Employees pay 1%, while businesses pay 3% for international employees.

Why Choose Us?

Establishing a company in Bahrain to employ a small team takes a lot of time, money, and effort. The Bahraini labor legislation provides strong worker rights, which necessitates strict attention and knowledge of regional standards of excellence. Our company makes entering Bahrain simple and painless.

We can help you find and hire the right candidates. Thus, managing HR, payroll, and assuring adherence to local laws can be done without the hassle of forming a corporation. Our Bahrain Employer of Record and PEO solution gives you protection so you can concentrate on running the operations of your business.